Is Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) a Strong ETF Right Now?

The Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) made its debut on 11/08/2017, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is managed by Invesco. OMFL has been able to amass assets over $4.97 billion, making it one of the larger ETFs in the Style Box - Large Cap Growth. OMFL seeks to match the performance of the RUSSELL 1000 INVESCO DYNAMIC MLTIFCTR ID before fees and expenses.

The Russell 1000 Invesco Dynamic Multifactor Index is constructed using a rules-based methodology by selecting equity securities from the Russell 1000 Index, which measures the performance of the 1,000 largest-capitalization companies in the United States.

Cost & Other Expenses

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Operating expenses on an annual basis are 0.29% for OMFL, making it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 0.68%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

For OMFL, it has heaviest allocation in the Information Technology sector --about 27.7% of the portfolio --while Financials and Telecom round out the top three.

When you look at individual holdings, Apple Inc (AAPL) accounts for about 8.13% of the fund's total assets, followed by Microsoft Corp (MSFT) and Meta Platforms Inc (META).

OMFL's top 10 holdings account for about 42.2% of its total assets under management.

Performance and Risk

So far this year, OMFL has gained about 11.77%, and is up about 14.44% in the last one year (as of 10/07/2025). During this past 52-week period, the fund has traded between $48.43 and $60.45.

The ETF has a beta of 1.01 and standard deviation of 15.30% for the trailing three-year period. With about 578 holdings, it effectively diversifies company-specific risk .

Alternatives

Invesco Russell 1000 Dynamic Multifactor ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.

Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $197.01 billion in assets, Invesco QQQ has $390.59 billion. VUG has an expense ratio of 0.04% and QQQ changes 0.20%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth

Bottom Line

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This article originally published on Zacks Investment Research (zacks.com).

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